Tag: Advertising Standards Council of India

  • ASCI joins the ICAS Global thinktank

    The Advertising Standards Council of India (ASCI) is the founding member of the recently launched thinktank of The International Council for Advertising Self-Regulation (ICAS). This initiative is dedicated to fostering self-regulatory engagement, critical thinking, and research to advance responsible advertising worldwide.

    The launch event, held in New York yesterday, marked the beginning of a new platform whose goal is to ensure that a wide range of stakeholders – advertising standards bodies (self-regulatory organisations), industry leaders, academic institutions, and other key players – can have a voice and participate in a collective effort to improve advertising practices. Initially, ICAS will focus on pressing issues like sustainability and the responsible use of AI, with plans to address additional topics as the Think Tank grows in capacity and becomes fully operational.

    Said ICAS President Guy Parker: “We’re truly excited to launch the ICAS Global Think Tank. We’re confident it will provide the platform we need to address some of the most pressing issues facing the advertising sector today, generating insights that will help inform evidence-based policymaking, elevate ad standards and ultimately benefit people and communities worldwide. We are delighted that many associations and companies have already committed to supporting this initiative, and we look forward to welcoming even more members and stakeholders to the Think Tank in the months and years ahead.”

    Added Manisha Kapoor, CEO & Seceretary General, ASCI and ICAS Vice President: “ASCI via its ASCI Academy is very honored to be a founding member of the ICAS Global Think Tank. As issues around advertising regulation get more complex, it is important that we all put together our minds and resources to support this initiative. We look forward to meaningful discussions and outcomes that will help build consumer trust and confidence in brands and advertising.”

    This initiative is aligned with ASCI Academy’s work on thought leadership. The other founding members and supporters of the Global Think Tank, include self-regulatory organisations, industry associations and industry members such as:

    ASCI will work with other partners to discuss and debate new ideas and best practices that will prove beneficial to the industry and strengthen consumer protection.

  • CCPA and ASCI join hands to strengthen Advertising Regulation in India

    The Department of Consumer Affairs (DoCA) and The Advertising Standards Council of India (ASCI) both operate with a mutual goal of protecting consumer interests. This objective is central to the missions of both ASCI and the Central Consumer Protection Authority (CCPA) when it comes to the issue of misleading advertisements.

    It is noteworthy that ASCI’s code and associated guidelines in the area of advertising are harmonious with several guidelines enforced by the Central Consumer Protection Authority. These encompass guidelines concerning misleading advertisements, dark patterns, influencer guidelines, coaching institutes, greenwashing and more.  In light of this alignment, the CCPA has recognized that any violation of ASCI’s code pertaining to misleading advertisements may potentially contravene the Consumer Protection Act of 2019 and its related guidelines.

    Therefore, the CCPA has requested ASCI to forward any advertisement that is non-compliant with the ASCI Code and could potentially violate the Consumer Protection Act, 2019, along with its accompanying guidelines, to CCPA for appropriate action. Any such case escalated by ASCI concerning misleading advertisements will be promptly addressed and handled in strict accordance with the Consumer Protection Act 2019 by the CCPA.

    This collaboration comes amidst the growing complexity of the advertising landscape, especially with respect to digital advertising. Commenting on this development, Shri Rohit Kumar Singh, Secretary DoCA said, “The alignment between ASCI’s code and CCPA’s guidelines highlights a collective effort towards promoting transparency and fairness in advertising. With similar objectives, CCPA and ASCI can work in complementary ways to ensure that any infringements are addressed effectively. New challenges are being created by digital advertising, and keeping pace demands a collaborative approach with like-minded bodies.  Regulators working closely with self-regulators is an established best practice, and we hope that with this partnership, regulation of Indian advertising keeps getting more effective. Where voluntary compliance with the CCPA guidelines is not forthcoming, or in the case of repeat offenders, the CCPA has the powers to impose fines and penalties. We will not shy away from enforcing the provisions of the Consumer Protection Act as needed.”

    Manisha Kapoor, CEO and Secretary-General ASCI said: “We have been working closely with DoCA and CCPA on several issues, and we are truly delighted to deepen this relationship.  ASCI has deep expertise and specialization in advertising regulation and we thank CCPA and DoCA for their trust and their collaborative approach. A robust self-regulatory system helps all stakeholders and this partnership is a positive step in taking self-regulation to the next level.”

    DoCA and ASCI have, in recent times, held joint consultations and collaborations on several issues surrounding advertising such as Influencer Guidelines, Greenwashing, Dark Patterns and Surrogate Advertising, creating greater dialogue and alignment between industry, civil society and regulators. Advertising self-regulators around the world work closely with the governments in models of co-regulation in formal and informal ways. Given the complex nature of advertising today and the borderless nature of the online space, issues like disguised advertising, deepfakes and scams are coming to the fore, such partnerships gain significance in effective advertising regulation.

  • ASCI guidelines on environmental claims in ads

    By Our Staff

     

    The Advertising Standards Council of India (ASCI) has issued guidelines to prevent false pro-environment claims, also known as greenwashing, that has been seen across sectors.

     

    The “Guidelines for Advertisements Making Environmental/ Green Claims”, have been in the public domain for consultation since November 16, 2023, and were approved in the recent Board of Governors meeting.

     

    Said Manisha Kapoor, CEO and Secretary-General, ASCI : “Consumers today are exercising their preferences for green products, and in many cases, pay a premium for them. It is necessary that consumers have the correct information to make informed choices to support green products. It is also important that organizations that genuinely provide greener products are able to communicate this clearly to consumers. The Government too has expressed their concern on greenwashing or false green claims, and we believe that these guidelines are a significant step towards promoting transparency and accountability in environmental/ green claims made in advertising.”

     

    Notes a communique: “Effective February 15, 2024, these guidelines aim to ensure that environmental claims made by advertisers are reliable, verifiable, and transparent. Consumers are increasingly demanding products and services which minimise harm to, or have a positive effect on, the environment. As a result of a proliferation of products, services and businesses which claim to meet that demand it is imperative for such claims to be reliable and verifiable.”

     

    Greenwashing, as per the communique, violates Chapter I of the ASCI Code on misleading advertisements. In order not to breach Chapter I of the ASCI code, advertisements must adhere to the following guidelines.

     

    GUIDELINES:

    1. Absolute claims such as but not limited to “environment friendly”, “eco-friendly”, “sustainable”, “planet friendly” that imply that the entire product advertised has no impact or only a positive impact or reduces adverse impact must be capable of being substantiated by robust data and/ or well-recognised and credible accreditations. Such absolute claims cannot be diluted by means of a disclaimer or any other clarificatory mechanism such as a QR code or website link etc.

    2. Comparative claims such as “greener” or “friendlier” would need evidence that the advertised product or service provides an environmental benefit over that of the advertiser’s previous product or service or competitor products or services and the basis of such comparison is made clear.

    3. A general environmental claim must be based on the full life cycle of the advertised product or service, unless the advertisement states otherwise, and must make clear the limits of the life cycle. If a general environmental claim cannot be justified, a more limited claim about specific aspects of a product or service might be justifiable. Claims that are based on only part of an advertised product or service’s life cycle must not mislead consumers about the product or service’s total environmental impact.

    4. Unless it is clear from the context, an environmental claim should specify whether it refers to the product, the product’s packaging, a service, or just to a portion of the product, package, or service.

    5. Advertisements must not mislead consumers about the environmental benefit that a product or service offers by highlighting the absence of an environmentally damaging ingredient if that ingredient is not usually found in competing products or services. Similarly, advertisements must not claim an environmental benefit that results from a legal obligation if competing products are subject to the same requirements.

    Where such ‘free-of’ claim is necessary to equip the consumers with relevant information, an appropriate disclaimer should be added to indicate the purpose e.g. “XX-Free: (Names of regulation) prohibit the use of (name of prohibited substance/ingredient) in (category of products)”. It would be deceptive to claim that a product is “free-of” a substance if it is free of one substance but includes another that is known to pose a similar or higher environmental risk.

    6. Where the use of Certifications or Seals of Approval create the impression of an environmental claim to consumers, then the advertiser should make clear what attributes of the product or service have been evaluated by the certifier.  The advertiser should ensure that the certifying agency is nationally/internationally accredited by a certifying authority for e.g. agency accredited by the UN council/committee, BIS etc.

    7. An advertiser shall not use visual elements in an advertisement which results in the advertisement conveying a false impression that the product is less harmful or more beneficial to the environment, when seen as a whole, unless required under law. For example, logos representing a recycling process on packaging and/or in advertising material can significantly influence a consumer’s impression of the environmental impact of a product or service.

    Visual elements for the above purpose shall not include the colour scheme related to nature or environment or images of natural ingredients or natural elements used on the products / packaging / services as a part of its creative brand identity or trademark/tradename unless such elements used are connected directly to any Environmental Claim made on such products / packaging / services to influence a consumer’s impression of the environmental impact of a product, packaging or service. For example, a green coloured packaging with natural ingredients contained in the product will not be considered as contributing to a green claim unless it refers to an environmental claim

    8. Advertisers should refrain from making aspirational claims on the products/ packaging/services about future environmental objectives unless they have developed clear and actionable plans detailing how those objectives will be achieved.

    9. For carbon offset claims where the offset does not occur within the next two years, advertisers should clearly and prominently disclose the same. Advertisements should not claim directly or by implication that a carbon offset represents an emission reduction if the reduction, or the activity that caused the reduction, was required by law.

    10. For claims pertaining to the product being compostable, biodegradable, recyclable, non-toxic, free-of etc. advertisers should qualify the aspects to which such claims are being attributed, and the extent of the same. All such claims should have competent and reliable scientific evidence to show that:

    11. a) The product or the qualified component where applicable will break down within a reasonably short period of time after customary disposal.

    12. b) The product is free of elements that can lead to environmental hazards.

     

    Link to Guidelines for Advertisements Making Environmental/ Green Claims

     

  • Healthcare violations max mentions in ASCI roster

    By Our Staff

     

    The Advertising Standards Council of India (ASCI) has published its half-yearly complaints report for the period April to September 2023, offering insights into emerging trends and insights in advertising standards. The report shows a 34% increase in complaints (4491) processed, coupled with a corresponding 27% rise in the number of ads processed (3501).

     

    Of the 3,501 ads processed, 564 (16%) were flagged as potential direct violations of the law, which represents a 22% increase over the previous year. 35% of the total ads processed were not contested and were promptly withdrawn or modified. A further 47% of ads were found violative of the ASCI Code and the advertisements were recommended to be withdrawn or modified. Only 2% of complaints were dismissed

     

    Of the 3,501 complaints processed, digital media remained the primary source of violations at 79%. Print media and television contributed 17% and 3%, respectively, while other mediums accounted for 2% of the reported violations.

     

    Consumer complaints comprised 21.3% of the total complaints, indicating significant public engagement in upholding advertising standards. 75.4% of complaints were initiated suo-motu by ASCI, demonstrating the organisation’s proactive approach to identifying potential violations.

     

    Here are some key findings from the report:

    Digital Dominance: A whopping 79% of problematic ads were found online, highlighting the challenges in the digital advertising world.

    Regulatory Vigilance: ASCI’s focused monitoring mechanisms boosted digital surveillance to combat objectionable content in the medium. 98% of overall ads processed required some form of modification.

    Voluntary Compliance: In the digital advertising sphere, influencers contributed to 22% of total ads complained against at ASCI. 99.4% of advertisements processed for influencer guidelines were found to be in violation. ASCI received compliance with its recommendations in 92% of influencer cases taken up v/s 86% in previous years, signalling greater compliance with ASCI’s CCC recommendations.

    Healthcare in the Spotlight: Healthcare emerged as the most violative sector, constituting 21% of all ads processed. The surge is attributed to a high volume of drug and medicine advertisements on digital platforms.

    Legal Violations: ASCI observed a significant increase in ads directly violating the Drug and Magic Remedies Act of 1954, leading to the issuance of intimations to advertisers advising withdrawal or modification of the advertisement. ASCI referred 565 advertisements to the Ministry of AYUSH in just six months, compared to 464 ads referred in the last financial year.

     

    Said Manisha Kapoor, CEO and Secretary-General, ASCI, said: “ASCI remains committed to addressing the challenges posed by digital advertising. All stakeholders need to come together to tackle the issue of online safety of consumers given that they spend high amounts of time there, and where there is a proliferation of objectionable advertising. Our constant vigilance of the online space helps call out the advertisements and brands that violate the ASCI code requiring ads to be truthful, decent and safe. We hope that the various sectors recognise the breaches and commit to more responsible advertising.”

     

  • ASCI broadens definition of celebrities in its code

    By Our Staff

     

    The Advertising Standards Council of India (ASCI) has updated the definition of celebrities in its code to include social media influencers having a following of 500,000 or more.

     

    Notes a communique: “The ASCI code has a specific guideline for celebrities which requires advertisements featuring celebrities to not violate the ASCI Code, and for celebrities to be familiar with the code in letter and spirit. Testimonials of celebrities must reflect their genuine, recent opinion and must be based on adequate information or experience about the product or service being advertised. The guidelines mandate that celebrities conduct due diligence to ensure that claims featured in the advertisements can be objectively verified and substantiated. Celebrities, when called upon, need to produce evidence of due diligence. Alternatively, the advertiser should have developed the advertisement following ASCI’s advertising advice. Additionally, the ASCI code requires celebrities not to participate in the advertisement of a product, treatment or remedies that are prohibited for advertising under the Drugs & Magic Remedies (Objectionable Advertisements) Act, 1954; and the updated Drugs & Cosmetic Act, 1940, and Rules 1945 (Schedule J).”

     

    The communique further adds: The ASCI code now defines celebrities as individuals that:

    :: Get compensated Rs 40 lakh or equivalent value annually for appearing in advertisements or campaigns on any medium and any format

    Or

      :: Have a social media following of 500,000 or more on any single social media handle

     

    It may be noted that the Consumer Protection Act, 2019 puts the responsibility of due diligence on all endorsers, whether they are celebrities or not. However, due to the disproportionate influence and impact of individuals with large followership, ASCI requires celebrities to demonstrate a much greater responsibility in making sure that their followers do not get deceived or misled. ASCI has noticed a massive increase in ads featuring celebrities that are misleading. Versus the 55 ads that it processed in 2021-22, ASCI processed over 500 misleading ads featuring celebrities in 2022-23. This shows that in spite of their legal obligations, several celebrities continue to feature in ads that make misleading claims.

     

    Said Manisha Kapoor, CEO and Secretary General, ASCI: “With the advent of social media and the increasing popularity of influencers on digital media, the definition of celebrities has come to change drastically. Earlier, only personalities from the world of sports or entertainment were considered celebrities. Today, however, the scenario is different. We have a range of personalities who are extremely popular on social media and share a close personal connection with consumers. These personalities affect the spending habits of consumers who trust them. So, it’s vital to ensure consumer protection – especially when celebrities endorse products or services that can cause serious financial loss and physical harm. This update widens ASCI’s ambit and includes all those personalities who have a notable influence as celebrities. With this, we have taken yet another important step in furthering the cause of consumer safety with regard to advertising.”

     

  • ASCI and Khaitan & Co release whitepaper

    By Our Staff

     

    The Advertising Standards Council of India (ASCI) and Khaitan & Co, a law firm, have jointly released a comprehensive whitepaper on generative artificial intelligence (AI), highlighting the opportunities, risks and legal considerations around its use in advertising.

     

    Manisha Kapoor, CEO and Secretary General, ASCI, said: “AI is a groundbreaking technology with immense potential, especially in advertising. As advertisers increasingly adopt AI, they must be aware of its impact on consumers and society. From an ASCI and consumer protection perspective, advertisements made with AI are subject to the same principles of regulation and consumer protection that any ad is. As this field evolves, greater regulatory clarity will also have to keep pace with technological development. Privacy, copyrights, and responsibility over content creation are key issues that need to be dealt with in time. We extend our gratitude to Khaitan & Co. for their legal expertise and collaboration in producing this report.

     

    Tanu Banerjee, Partner, Khaitan & Co, added: “AI is set to disrupt how any business works today. The adoption of generative AI is particularly high in the advertising sector, given how AI has revolutionised the way creative materials used in ads can be developed. However, though the evolving AI technology offers massive opportunities, it also presents several legal risks and challenges, such as issues around ownership of content, privacy of data, AI bias, authenticity of prompts etc. While the regulatory framework for AI evolves, it’s critical for advertisers to be aware of the existing regulations and legal principles, to safeguard against these risks and to ensure ethical use of generative AI. We are very grateful to ASCI for their support and invaluable insights in preparing this report.”

     

    Generative AI enables advertisers to automate the creation of original content, including text, images, articles, marketing collaterals and more. It also enhances customer experiences through chatbots, AI assistants and interactive advertising. The whitepaper acknowledges the limitless applications of generative AI in advertising while addressing concerns around its potential misuse and manipulation, particularly related to consumer protection.

     

    With a focus on the Indian legal framework, the whitepaper highlights the legal risks and challenges that advertisers may face when utilising generative AI. It addresses issues such as potential copyright infringement, prevention of unlawful content, and data privacy concerns.

     

    Some of the best practices outlined in the whitepaper to mitigate risks associated with generative AI are:

    1. Review the AI platform’s terms of use and licensing compliance to reduce liability risks.

    2. Obtain the necessary authorisations and licenses for uploaded materials, including copyrighted and trademarked content.

    3. Avoid prohibited input prompts and carefully check the output for prohibited content before commercial use.

    4. Mitigate liability risks by implementing robust content review processes, establish guidelines, and including AI disclaimers in marketing materials.

    5. Safeguard confidential information and ensure data privacy by enforcing non-disclosure agreements and implementing robust security measures.

    6. Upskill human labour in editorial oversight and compliance to avoid employee displacement.

     

    The whitepaper concludes by addressing the future of generative AI and the unique challenges that must be addressed for its responsible and ethical deployment. It emphasises the importance of principles such as fairness, accountability, transparency, and ethics within the AI community. Advertisers are encouraged to embrace these principles, ensuring fairness in decision-making, accountability for actions, transparency in operations, and ethical considerations in their impact on individuals and society.

     

  • ASCI’s updated advertising guidelines for education sector

    By Our Staff

     

    The Advertising Standards Council of India (ASCI) has updated its guidelines for advertising educational institutions, programmes, and platforms after rigorous rounds of public consultation. The exercise was undertaken with the aim of establishing a set of just and equitable principles that concern a critical industry in the country: education. Public consultation for the guidelines started on March 14, 2023 and concluded on April 15, 2023.

     

    Education has been among the top violative sectors for the past few years when it comes to advertising. In its Annual Complaints Report 2022–23, classical education ranked second among the top violative categories with 13.8% of total ads that did not adhere to ASCI’s guidelines.

     

    While ASCI’s existing education guidelines require educational entities to substantiate any claims they make in their advertisements with relevant evidence, this latest update ensures that the advertisers are also mindful that their ads consider the students’ mental and physical well-being. The amendments state that ads by educational institutions, including universities, colleges and schools, coaching classes, EdTech platforms and others that offer education and training programmes should not stereotype students based on their gender, or appearance, nor portray those who score low as unsuccessful or failures.

     

    Further to complying with the general rules of ASCI’s Code for Self-Regulation in Advertising, and the existing educations sector guidelines, the advertisements of educational institutions, programmes and platforms will now have to comply with the following additional guidelines:

     

    An advertisement may not show school students compromising on sleep or meals to study as this normalises unhealthy habits which are detrimental to student health.

     

    While an advertisement may show disappointment with low scores, it must not portray an average or poor scorer as an unsuccessful student or a failure,  or show him/ her/ them as demotivated, depressed or unhappy, or receiving less love or appreciation from parents, teachers or peers.

     

    An advertisement must not create a false sense of urgency or fear of missing out that could accentuate anxieties amongst school students, or their parents.

     

    While an advertisement may feature students of any gender, the advertisement must not suggest that certain subjects are associated with particular genders alone. Advertisements must also not suggest that students with high scores are always associated with stereotypical characteristics such as wearing thick glasses. This does not prevent advertisements from depicting such students so long as they do not suggest that only these students are successful.

     

    Responding to the new guidelines, Rohit Kumar Singh, Secretary, Ministry of Consumer Affairs said: “Education advertising touches almost every citizen in the country. Ensuring the sanctity of advertising in this sector is an important task. The ASCI guidelines address the various issues that plague the sector and we hope that the industry will follow these in letter and spirit. I would like to reiterate that misleading ads are also a violation of the Consumer Protection Act and all necessary steps will be taken to keep our citizens safe”.

     

    Talking about the amendment to education guidelines, Manisha Kapoor, CEO and Secretary General, ASCI, said: “In addition to ads not being misleading, the updated guidelines also provide for the physical and mental well-being of students, particularly school students. While fierce pressure in education is a reality, advertising must not perpetuate this problem. normalise it or exploit student and parental vulnerability. Based on our Ed-Next study, such issues were identified, and post extensive consultation with different stakeholders, we are now issuing the updated guidelines. ASCI remains deeply committed to consumer protection, and we will continue to update our Code to reflect contemporary and emerging concerns in advertising content”.

     

  • Goafest 2023 unveils agenda and speaker line-up

    By Our Staff

     

    The Goafest 2023 organising committee has unveiled its speaker line-up and the agenda for the festival.

     

    The three-day event will see over 60 leading global and Indian speakers and performers across 20 knowledge seminars and 11 masterclasses.

     

    Leading advertising personalities like Nick Law – Global Creative Chairperson – Accenture Song and Ed Pank – Managing Director – WARC APAC will address the audiences. Besides this, celebrities from Indian sports and Bollywood like Harbhajan Singh, Tabu and Rana Daggubati will talk abut their achievements and stories of strength.

     

    The panels will see participation of leading corporate personalities like Hemant Malik of ITC Foods, Rohit Kapoor of Swiggy, Prabha Narasimhan of Colgate-Palmolive, Chandan Mukherji of Nestle India, Priyanka Gill of Good Glamm Group, Ravi Santanam of HDFC and Vipul Prakash of MakeMyTrip.

     

    The sessions will also see industry leaders like Rajan Anandan of Sequoia Capital,  Sam Balsara of Madison, Josy Paul of BBDO, Rohit Ohri of FCB, Anusha Shetty of Grey, Dheeraj Sinha of Leo Burnett, Vikram Sakuja of Madison, Subhash Kamath, Anupriya Acharya of Publicis, Tarun Katyal of Coto, Lata Venkatesh of CNBC TV18, T Gangadhar of Quotient, Aditi Mishra of Lodestar UM, Amin Lakhani of Mindshare, Mohit Joshi of Havas Media, Naveen Khemka of Essence Mediacom, Geet Lulla of Comscore, Pankaj Krishna of Chrome DM and Salil Kumar of ITGD sharing their invaluable insights.

     

    Special sessions curated by the Advertising Standards Council of India on Creator Calling Creator, by the IAA on Voice of Change on Gender Bias and Ad Asia 2023 Seoul Roadshow by AFAA have also been scheduled. Advertising Rocks, a unique industry initiative and Musical Contest, will also be staged.

     

    On the entertainment end, there’s singer-composer Kanika Kapoor, playback singers Papon, Divya Kumar and Asees Kaur and Digital Creator and Stand Up Comic, Aiyoo Shraddha. Plus DJ Suketu, Savio and DJ AJ for the late evenings.

     

  • ASCI tables Annual Complaints Report 2022-23

    By Our Staff

     

    The Advertising Standards Council of India (ASCI) released its annual complaints report for 2022-23 which contains several startling observations, especially those pertaining to advertising in the digital space. During the period, ASCI reviewed 7,928 advertisements across different media, including print, digital and television. ASCI has stepped up its scrutiny of ads nearly 2 folds over the last 2 years. TV and print advertisers continued to be highly compliant at 94%, however the overall compliance is lower at 81% due to digital. Hence, digital ads emerged not just as a leading violator, with 75% of ads processed being from the digital space, but also as the least compliant. This raises serious concerns about the safety of consumers in the online space.

     

    As per the report, the real-money gaming industry surpassed the education sector to emerge as the most violative sector, moving from fifth to first place. An astounding number (92%) of gaming advertisements reviewed by ASCI for FY 2022–23 did not adhere to the guidelines for real money gaming and failed to inform consumers about the risks of financial loss and addiction. The sector also gained the dubious distinction of being the least complaint, with only 50% of ads being modified voluntarily after they have been called out. It may be remembered that ASCI had released its guidelines for the Real-Money gaming sector in December 2020, and the Ministry of Information and Broadcasting had thereafter released an advisory asking all parties to comply with the guidelines.

     

    The report also revealed a sharp increase in the number of misleading ads featuring celebrities. ASCI processed 503 such ads, as opposed to 55 the previous year, a growth of 803%. In 97% of these ads, the celebrities failed to provide evidence of due diligence as mandated by the Consumer Protection Act. This again is a serious issue as ads featuring celebrities have a high impact on consumers.

     

    In addition, influencer violations stood at 26%, with 2,039 complaints being processed against them. Categories, including personal care, food and beverage and fashion and lifestyle, topped the list of influencer-related violations.

     

    ASCI’s adoption of artificial-intelligence-based tracking has bolstered its ability to scrutinise digital media effectively, despite challenges such as the pace of advertising and the sheer number of ads to be processed. This goes to show that the self-regulatory organisation remains steadfast in its commitment to promote responsible advertising practices and protect consumer rights.

     

    The ASCI Annual Complaints Report serves as a wake-up call to advertisers, platforms, and regulators, urging them to join forces and create a secure environment and foster trust among consumers.

     

    NS Rajan, Chairman, ASCI, observed: “The digital advertising landscape is truly challenging us all and ASCI is no exception. Stepping up our surveillance through AI based tools and a robust complaint management system has ensured that ASCI is keeping pace with this dynamic environment. Updating our codes to reflect newer consumer concerns makes sure the ASCI codes remain contemporary. We will continue to act as the conscience keeper of the Indian ad industry with transparency and future-facing expertise.”

     

    Manisha Kapoor, CEO and Secretary General, ASCI, added: “The complaints analysis for 2022–23 clearly shows that the digital medium is leading in terms of violative ads. This raises significant concerns around online consumer safety and trust. Advertisers, content creators and platforms must come together to address this issue on an urgent basis to protect consumer interests. In addition, the sharp increase in the number of violative gaming ads needs serious attention from the industry.”

     

  • ASCI: Toothless Tiger or Scapegoat?

    Hand drawn toothy tiger. Designed By 千图网 from https://pngtree.com

     

     

     

    By Prabhakar Mundkur

     

    Prabhakar MundkurFor some time now, the Advertising Standards Council of India (ASCI) has been the subject of criticism about its effectiveness. There is the annual rant in the media with various commentators taking potshots before or during an IPL which sees a major blip in advertising in India. ‘Watchdog’, which is often used to describe the ASCI, is perhaps not wholly descriptive of what it does. It can watch like a dog, but I am not sure it can bite. To bite you need legislation and now we have the Department of Consumer Affairs which has the teeth to bite. In the UK, for example, it is not the ASA that is considered the watchdog, but the Competition Markets Authority. The CMA has teeth. It is a non-ministerial government department to prevent anti-competitive activities. The Indian equivalent is the Competition Commission of India which was formed under the Competition Act 2002, which was formed when the erstwhile MRTP Act was repealed. But unlike the MRTP, which was very high profile, you don’t hear much about the CCI. That’s a pity!

     

    Most critics of course miss the point that the ASCI is the advertising industry’s self- regulatory body. In many ways, it is the industry’s conscience that tells you what is misleading. And like we can always overcome our own conscience even when it is telling us not to do something, an advertiser can knowingly bend the rules. When you can overcome your conscience, you are being unscrupulous.

     

    But coming back to the issue of misleading advertising, there are several bodies that are responsible for misleading advertising in the country. For example, the Cable Television Network Rules does not permit advertising for alcohol or tobacco products. Section 7 of the Rules on the Advertising Code has an exhaustive list of things that cannot be permitted.

     

    (viii) promotes directly or indirectly production, sale or consumption of- (A) cigarettes, tobacco products, wine, alcohol, liquor or other intoxicants;

     

    But rarely does anyone complain to the network channels that surrogate advertising for alcohol is being found objectionable by then. After all isn’t ASCI the favourite whipping boy for advertising that seems to cross the borders of acceptable advertising norms?

    (1) The Central Authority may, after receiving any information or complaint or directions from the Central Government or of its own motion, conduct or cause to be conducted a preliminary inquiry as to whether there exists a prima facie case of violation of consumer rights or any unfair trade practice or any false or misleading advertisement, by any person, which is prejudicial to the public interest or to the interests of consumers

    – The Consumer Protection Act, 2019

     

    Equally, the Consumer Protection Act 2019 issued by the Ministry of Law and Justice protects the interests of consumers through legislation and it has a mechanism for accepting consumers complaints. It also has the authority to disburse fines for misleading products or advertising. Violation of their guidelines for endorsement can attract penalties from Rs 10 lakh to Rs 50 lakh.

     

    So why is the ASCI the favourite pick of advertising-watchers when they find objectionable advertising in our media? If one actually looks at the number of regulatory bodies in the country there are quite a few.

     

    1. Food Safety and Standards Authority (FSSAI)

    2. Central Drugs Standard Central Organisation (CDSCO)

    3. Insurance Regulatory Development Authority

    4. Telecom Regulatory Authority of India

    5. Securities and Exchange Board of India

    6. Reserve Bank of India

    7. Medical Council of India

    8. Competition Council of India

    9. Consumer Protection Act 2019

     

    But perhaps what India lacks is an inter-disciplinary body or an inter-ministerial apex body that can look at the subject of misleading advertising.

     

    For example, if we take the UK as a market, the Competition Markets Authority and the ASA form a powerful duo against misleading advertising. Also, misleading advertising can be controlled by the Consumer Protection from Unfair Trading Regulations 2008 and Business Protection from Misleading Marketing Regulations 2008. The Office of Communications (Ofcom) is the ASA’s co-regulatory partner and legal backstop for regulating TV and radio advertisements. The Financial Conduct Authority for example in UK blocks several financial services ads. In 2022, it removed 8582 consumer promotions and published over 1800 alerts to prevent consumers from losing their money to financial scams.

     

    The House of Commons briefing paper considers the ASA ( Advertising Standards Authority ) and the regulation of advertising in the UK and therefore has the indirect consent of the government unlike the ASCI.

     

    The ASA working hand in hand with the Competition Markets Authority gives the ASA very large teeth indeed. And the CMA will get some very extra large teeth from the Digital Markets, Competition and Consumer Bill to be introduced shortly. Also, the several legislations provide a whole bag of weapons for the ASA to conduct their business of tracking misleading advertising.

     

    In closing, I would like to point out that in markets like the UK it is possible for the self-regulatory body the ASA in the UK to have very large teeth that can bite those that stray away from the advertising standards code. India pales in comparison.

     

    So I leave you to decide whether the ASCI is a toothless tiger or is just being made a scapegoat for the lapses in the fight against misleading advertising in India.

     

    Prabhakar Mundkur is a veteran advertising professional and commentator. If it’s not his views on A&M, he’s very busy with his music, and in the lockdown produced several music videos (some 100-odd). His views here are personal.

     

  • Transparency & honesty key reasons why consumers trust influencers

     

     

    By Our Staff

     

    The Advertising Standards Council of India (ASCI) released a short report titled ‘Influencer Trust Report’ preceding its Brand Influencer Summit 2023 to be held later this month. ASCI conducted an online dipstick with 820 respondents above the age of 18 about their trust in social media influencers who promote brands online. The report reveals how much consumers trust influencer advertising, what builds trust and what depletes it.

     

    According to the report, 91% of people trust advertising in general, and 79% of respondents trust social media influencers. Transparency and honesty stood out as the key reasons why consumers trust influencers on social media (63%), followed by relatable content (57%), and personal stories at (53%).

     

    The report revealed that consumers stayed away from influencers when they sensed a lack of transparency (43%), repetitive content (42%), and over-promotion (41%). Overall, it was found that both brands and influencers gained from meaningful partnerships. Around 64% of consumers felt the brand became more trustworthy when influencers endorsed it, while 58% of those surveyed thought that the influencers became more trustworthy when they endorsed the brand.

     

    Other key findings of the report include:

    :: 6 out of 10 respondents claimed they spent at least 2 hours on social media, daily

    :: 90% of the respondents revealed they made at least one purchase based on influencer endorsement, while 61% claimed to have made three or more purchases. This behaviour was particularly prevalent among consumers ranging from 25 to 44 years of age

    :: Besides established brands, newer brands benefited considerably with their products being discovered through content advertised by influencers

     

    Ever since ASCI launched its influencer guidelines in May 2021, it has processed 2,767 cases against brands and influencers for not declaring material connections. Platforms where the violations occurred included Instagram at 58%, YouTube at 33%, Twitter at 7%, and Facebook at 2%.

     

    Talking about the findings of the report, Manisha Kapoor, CEO & Secretary General, ASCI, said: “While ASCI released its guidelines in May 2021, the Central Consumer Protection Authorities also now requires disclosure of material connection between brands and influencers. Hence, non-disclosures are potential violations of the law. An important aspect of the dipstick is the revelation that non-transparency was among the prime reasons why influencers lost the trust of their followers. On the other hand, transparency in their communication significantly built trust. We will be having several important conversations on this and other interesting aspects of brand-influencer partnerships at the #GetItRight Brand Influencer Summit 2023 with brand leaders and top influencers. The summit will help both brands and influencers understand how to build robust and sustainable relationships in the social media space.”

     

    The survey was conducted across multiple locations including metros, Tier I and Tier II cities.

     

  • ASCI tightens disclaimer guidelines

    By Our Staff

     

    The Advertising Standards Council of India (ASCI), has updated its “Guidelines for Disclaimers made in supporting, limiting or explaining claims made in advertisements”. The ASCI code requires that suitable disclaimers be used to properly explain and support claims made in advertisements to ensure that consumers can read all the information presented. In the past three years, ASCI has processed over 800 advertisements which were found to be in violation of the disclaimer guidelines.

     

    In a recent survey carried out by ASCI with 130 consumers, it was observed that

    1. 80% of respondents did not notice the disclaimer

    2. 33% could not understand the disclaimers clearly even after adequate exposure  time had been provided

    3. 62% of respondents felt that the disclaimer was excessively long.

     

    The Consumer Complaints Council (CCC), during their meetings, have also observed that sometimes, the frame of the advertisement that contains the disclaimer was very crowded, and distracted the viewer’s focus.

     

    To address these issues, the Guidelines for Disclaimers made in supporting, limiting or explaining claims made in advertisements have been amended by ASCI after consultation with stakeholders. The key additions to the existing disclaimer guidelines are as follows:

    :: The use of disclaimer should be kept to a minimum. Long or otherwise complex disclaimers with large blocks of text and difficult words are a deterrent to viewers attempting to read the contents of the disclaimer. In such cases advertisers should modify the headline claim to reduce the need for further qualification through disclaimers.

    :: Hold duration and readability of disclaimer – In television commercials or any other video advertisement on digital media, all disclaimers should be clearly readable to consumers. In a single frame in an advertisement:

    >> There should not be more than one disclaimer

    >> The disclaimer should be restricted to two full length lines and remain on  screen for more than four seconds for every line

    :: For regulatory requirements where the disclaimer exceeds two lines additional hold duration should be accounted for. For the purposes of calculating the duration of hold of disclaimers, all forms of text appearing on screen at any one  point in time should be counted. This includes both disclaimer text and any text  content in the main ad creative regardless of where on screen it appears and  whether or not it is repeated in audio.

     

    Other key facets of the disclaimer guidelines which remain unchanged are:

    :: A disclaimer can expand or clarify a claim, make qualifications, or resolve  ambiguities, to explain the claim in further detail, but should not contradict/modify  the material claim made nor contradict the main message conveyed by the  advertiser or change the dictionary meaning of the words used in the claim as  received or perceived by a consumer.

    :: A disclaimer should not attempt to suppress material information with respect to  the claim, the omission / absence of which is likely to make the advertisement  deceptive or conceal its commercial intent.

    :: A disclaimer should not attempt to correct a misleading claim made in an  advertisement.

    :: A disclaimer shall be in the same language as that of the claim/s of the Advertisement. In case of bilingual advertisements, the disclaimer should be in the dominant language of the advertisement.

     

    Commenting on the changes, Manisha Kapoor, CEO and Secretary-General ASCI said: “While ASCI has had disclaimer guidelines since 2016, it was observed that over-use of disclaimers made it difficult for consumers to understand all the information presented in the ad. This is evident from our survey where 80% of consumers did not even notice the disclaimers. Hence, it is important that claims are crafted in a way that minimizes the need for qualificatory disclaimers. Where disclaimers are needed, they should be  presented in a manner that someone who is interested in reading them has the  opportunity to do so.” For the full disclaimer guidelines: https://ascionline.in/disclaimer-guidelines.pdf